Yesterday, the price action of Bitcoin was positive against the USD. The first largest cryptocurrency per market capitalization had a 16% boost in price within a few hours. As expected, other cryptocurrencies started rising with Bitcoin leading to a spike in market capitalization. BTC was able to move from $4,041 to $4,300. The rally led to a 20 billion dollar rise in the market capitalization of all cryptocurrencies. This marked a break of the descending channel that has been ongoing for a while now.
Bitcoin (BTC) Bounces Back Along With The Cryptocurrency Market
Following the bloody thanksgiving week, this turnaround was just what the market needed. Keep in mind that within a seven day period, Bitcoin fell by 35%. This was the first time the cryptocurrency was falling that low in the past $14 months. This also marked an 80% dip into its all time high.
Bitcoin (BTC) Price Today – BTC / USD
As the price of BTC increased, the price of other cryptocurrencies started to increase as well. As at yesterday, XRP went up by 12% while ETH was up by 14%. While the price boost is encouraging, it isn’t what investors were hoping for at the end of the year. Compared to last year, BTC is still trading in red against the USD. The total market capitalization of all cryptocurrencies has come down by 68% within this year alone. Compared to the all time high, the market capitalization is down by 77%.
What Caused The Price Recovery?
Different experts have suggested possible causes for the sudden positive movement in the price action of BTC. The co-founder of CoinList, Andy Bromberg said that the recovery occurred because investors were trying to reenter the market after selling-off last week. In his words:
“The price rise today was most likely caused because investors may have realized that they overreacted by selling-off last week and decided to return to the market. Since the cryptocurrency market is still small, a few buyers can cause a surge in value by placing large orders”.
The CEO of BKCM, Brian Kelly said that the price action may have increased because the hash war within the Bitcoin Cash community is over and the Bitcoin’s hash power has been restored. He said:
“You are seeing the saga within the Bitcoin Cash community play out. People are starting to understand that Bitcoin is a legitimate asset class.”
Wall Street and Chairman of the New York Stock Exchange, Jeff Sprecher, said that cryptocurrencies have a future in regulated markets. This remark was encouraging to the cryptocurrency community. In fact, the parent company of the New York Stock Exchange, Intercontinental Exchange, is already backing a type of Bitcoin futures through Bakkt. The project will go live in January. VanEck intends to launch cryptocurrency-related products, Bitcoin Futures included, next year.
Bitcoin (BTC) Price Analysis
At this time, Bitcoin is trading in green $4,327.16. This shows that it is up by 7.45% against the USD. The 24 hour trading volume is $7,282,832,856 and the market capitalization is $75,288,141,157. If BTC keeps trading in red today, it may continue this way during the weekend.